DEL MAR — The check is in the mail. That was the message – no joke —from city government to 83 property owners who were told they would receive a refund after a utility undergrounding project was completed under budget almost two years ago.

Council authorized the return of the unspent funds at its June 16 meeting. Checks were scheduled to be mailed within 14 days of that approval.

That should be good news for resident Peter Kaye, although he’ll probably be skeptical until he actually has the check in hand. Kaye, a retired local journalist, said he has been asking city staff about the refund ever since the last pole was removed in October 2006. “It was always the same answer,” he said. “The money’s on its way.”

“We’re not all millionaires,” Kaye told council at the June 2 meeting. “Frankly, this money would be very useful if we ever live to see it.”

In May 2005 the city established the Ocean View/Pines assessment district to remove 35 poles by undergrounding utilities in those neighborhoods. The property owners affected shared the cost proportionately and were given two options to pay the assessment, which varied depending on lot size, views and the number of lines serving the property. They could pay the entire amount up front in cash to avoid interest or pay over 20 years through their property taxes.

About $1,680,000 was collected through cash and bonds to fund the project, which cost a little more than $1,350,000 to complete.

For the 45 property owners who chose the cash option, the assessment ranged from $4,500 to $41,736. The refunds range from $1,004 to $9,312, including interest.

Bonds will be called for property owners who did not pay cash. The remaining amount of the assessment lien for each property and annual assessment installments will be proportionately reduced. According to the staff report, calling bonds rather than issuing a credit was recommended “because it is more efficient for both the property owners and the city.”

The main reason for the delay, according to Mark Delin, assistant city manager, is that assessment law requires funds be held for two years after the issuance of debt — August 2005, in this case — to ensure all applicable bills are paid from bond proceeds prior to any refunding.

“I think the rest of the delay can be attributed to the fact that we have had significant personnel changes, including Joe Hoefgen, the former assistant city manager who managed this project,” Delin said. Hoefgen resigned last June to become city manager for Palos Verdes Estates near Long Beach.

“Once in a while, you can actually petition City Hall and get your (issue) resolved,” Mayor Dave Druker said. Druker offered residents the option of returning the money to the city. Although Druker may have been joking, Councilwoman Crystal Crawford said she was contacted by a resident interested in donating the refund.

“One homeowner had indicated to me an interest in donating this refund to the purchase of the Shores property,” Crawford said. “(If) other folks in the neighborhood … would like to do that, we would welcome receiving a check.”

While Kaye may not pursue that option, he was curious when he learned the money would be refunded with interest. “How much?” he asked. “Maybe I’ll let you hang onto it.”